14/06/2019 - 13:25

Saracen makes $38m takeover bid for Bligh

14/06/2019 - 13:25

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Saracen Mineral Holdings has made an all-scrip takeover offer for Fremantle-based gold explorer Bligh Resources, as it seeks to increase the resource for its Thunderbox operations.

Saracen makes $38m takeover bid for Bligh
Raleigh Finlayson says the offer makes sense for both companies.

Saracen Mineral Holdings has made an all-scrip takeover offer for Fremantle-based gold explorer Bligh Resources, as it seeks to increase the resource for its Thunderbox operations.

The offer values Bligh at a 97 per cent premium to its previous closing price.

Bligh’s directors and major shareholder, Zeta Resources, which together have an 88.47 per cent stake in Bligh, have indicated they will accept the offer in absence of a superior proposal. 

Peter Sullivan is the chairman of Zeta and a non-executive director of Bligh.

The offer comprises of 0.0369 Saracen shares for every one Bligh share, valuing Bligh shares at 12.8 cents per share and the company at $38.2 million.

On news of the offer, shares in Bligh double from its previous closing price of 6.5 cents to trade at 13 cents each at 1pm AEST.

Bligh has a JORC resource of 660,000 ounces of gold at its Bundarra project, which is located less than 30 kilometres south of Saracen’s Thunderbox operations.

Thunderbox is located 45 kilometres south of the town of Leinster.

Saracen managing director Raleigh Finlayson said the offer made sense for both companies.

“Saracen’s infrastructure at our nearby Thunderbox operations means we can unlock the value of Bundarra and this is reflected in the share price premium we have offered to Bligh shareholders,” he said.

The Thunderbox processing facility has an annual capacity of 2.5 million tonnes per annum and has board approval for a stage one development that is anticipated to deliver 597,000 ounces.

PwC is acting as both financial advisor and legal advisor to Saracen.

Shares in Saracen were up 4.9 per cent to trade at $3.64 at 3pm AEST.

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